Key insights
- The author argues that construction companies supporting AI data center build-out are in a bubble, citing unsustainable growth and high P/E ratios for companies like GE Vernova, Caterpillar, and Vertiv. They predict a rapid collapse post-buildout, suggesting the market is overlooking these parabolic moves.
Am I going crazy, or is the real AI bubble in construction? We are all scrutinizing every move of chips and hyperscalers while the companies building out the data centers are soaring to absolutely absurd levels.
GE Vernova - Up 330% since tariff lows with a PE of ~32.
Caterpillar (I mean... come on) - 230% with a PE of ~47.
Vertiv - 509% with a PE of ~82.
I mean, come on, Generac is up 90% just this year.
These are companies that have absolutely no chance whatsoever at sustaining their growth and will have a rapid collapse post-buildout, if you even believe their current valuations at all, yet we hear nothing about their parabolic moves in media.